Do Low Interest Credit Cards really Exist?
There probably is no individual checking the credit card options that is looking to pay the highest interest rate they possibly can. In fact, it is more likely the opposite is true and more and more people are searching for low interest credit cards, many hoping to transfer the balances on their current cards in order to lower their cost of using their credit. The cardholder that is most attractive to the credit card issuer is the one with the best credit score and they are the one that generally receives the most offers for low interest credit cards.
It is no secret that a person's credit score, based on their borrowing and repayment history has a major impact on every financial transaction they make. From being able to find low interest credit cards to the price they pay for their car insurance. Many housing companies conduct credit checks to determine a person's financial stability before renting them a house or apartment, making their credit score an important part of their life.
However, even those with a stellar credit rating, one with absolutely no negative entries and a history of promptly paying their debts may not be able to manage to hang onto their low interest credit cards, even with one minor faux pas landing on their record. While many believe it takes a major problem to increase their interest rates, many card companies build into their terms of service the opportunity to raise the rate seemingly on a whim.
Fine Print Not Always Legible On Some Cards
Many credit card issuers offer exceptionally low interest rates to new cardholders, typically for the first year, some on new purchases, some on balance transfers and a few on both. However, many of those low interest credit cards will experience a jump in rates at the slightest indication the cardholder may be at risk. A late payment, a missed payment or accidentally going over the credit limit are all reasons for the low interest credit cards to show a jump in rates.
With some of today's credit cards the payment due date may be more than just the date. Some agreements promise the payment will be made by two in the afternoon of the due date, for example and if the mail is not delivered on time, or the payment is not opened until 30-minutes after two, the low interest credit cards can experience a hike in the interest rate due to a late payment.